Resurge Growth Partners Launches €120 Million Venture Equity Vehicle to Support European and Israeli Scaleups

London, UK – October 28, 2024 – Resurge Growth Partners, a London-based venture equity firm, today announced the launch of a €120 million investment vehicle to provide capital and operational support to high-potential scaleups in Europe and Israel. The fund will target companies that are caught between venture capital (VC) and private equity (PE) financing, often referred to as “VC orphans.”
Resurge Growth Partners, co-founded by Oren Peleg, formerly of Oaktree Capital Management, and Eyal Malinger, a former partner at Beringea, aims to bridge the gap between venture capital and private equity. The firm’s innovative venture equity approach combines the agility of VC with the operational rigor of PE, offering strategic solutions for scaleups that have outgrown traditional VC funding but are not yet ready for large-scale PE investment.
Filling the Financing Gap for ‘VC Orphans’
Resurge plans to invest €10 million to €25 million into high-potential companies with revenues of at least €8 million, focusing on buyouts, recapitalizations, or partnerships with existing investors. These companies often find themselves overlooked by both VCs and PE firms due to slower-than-expected growth or profitability. Resurge’s goal is to support these businesses, helping them reach profitability and sustainable growth by providing both capital and hands-on operational expertise.
Oren Peleg explained, “Many companies get stuck between the rapid growth VCs demand and the scale PE firms require. Our venture equity strategy offers a tailored solution for companies that have a solid foundation but need the right support to unlock their potential.”
Strategic Focus
Resurge’s fund is sector-agnostic but will primarily focus on tech and tech-enabled businesses, including fintech, proptech, and consumer tech—areas where VCs have reduced their exposure in recent years. The firm is not pursuing trends like AI or deep tech but instead targets established industries where it can add significant value.
In addition to equity injections, Resurge Growth Partners will help portfolio companies manage and optimize venture debt, a challenge many scaleups face. Peleg noted that venture debt has become a stumbling block for some businesses, and Resurge aims to renegotiate terms or clear debt entirely, helping these companies regain their growth trajectory.
Supporting the Path to Profitability and Exit
Resurge plans to support its portfolio companies for three to four years, helping them achieve 30% to 50% annual growth, making them attractive for future PE exits or strategic buyers. “Our goal is to help these companies grow sustainably, not to chase the unsustainable triple-digit growth rates VCs often seek,” said Peleg. “We’re looking for long-term profitability and strategic value creation.”
With nearly half of the €120 million already secured from GP commitments and a leading family office, Resurge Growth Partners expects to raise the remaining funds on a deal-by-deal basis from family offices and high-net-worth individuals.
As the lines between VC, PE, and growth investing continue to blur, Peleg expects the venture equity space to become more competitive. “Right now, we’re one of the few in Europe actively pursuing this model, but I believe that will change over the next two years as more investors recognize the value of flexibility in their mandate.”
About Resurge Growth Partners
Resurge Growth Partners is a London-based venture equity firm focused on supporting European and Israeli scaleups caught between venture capital and private equity financing. The firm provides capital and operational support to companies generating €8 million or more in revenue, helping them achieve sustained profitability and strategic growth.